Abstract-In 2016, the Ministry of Religious Affairs of the Republic of Indonesia, the Directorate General of Islamic Education, and the Directorate of Islamic Higher Education, established a policy namely Strategic Management System (SMS). All colleges have to implement the system. But, the speculation that the policy wouldn't be continued appeared. This study aims to uncover the causes and to investigate the implementation progress and the effectiveness of the policy and its programs. The study used qualitative methods, including analysis of documents, interviews and observations. The results show that the Directorate of Islamic Higher Education has executed several stages i.e. 1) socializing; 2) mapping, and 3) rating. The components and the indicators are excellent to boost the colleges' performances as the first step of internationalizing Indonesian Islamic higher education. The Strategic Management System policy and its programs also give new perspective on Islamic educational management studies in which it is not only necessarily based on scriptures but also actual phenomena in Islamic education institutions.